Composite stock-certificate.



IVI. H. AVRAIVI. COMPOSITE STOCK CERTIFICATE,

APPLICATION FILED JAN.19,19I5.

Rtented Aug. 3, I91- 2 SHEETS-SHEET I.

ummmnnnnuimmunll1 rl n l-I Ix Mew/Marr' M. H. AVRAM.

COMPOSITE STOCK CERTIFICATE.

APPLICATION FILED JAN. I9. 1915.

Patented A110. 3, 1915.

2 SHEETS-SHEET 2.

I mln nu. r

anion.

Mois H. AVRAM, or NEW YORK, N. Y.

OMPOSITE 4.STOCK-(XEREIEIC'.IE.

specification of Lettersratent.

Application filed Jennery 19, 1915. i Serial No. 3,017.

. which the security offered to the stock holders is increased, business expenses are reduced, and a fund is created out of which any temporary falling off in the earning capacity of any one stock, is made up to the stock holder.

In carrying out the invention, a stock certificate book or binder may be employed, which is illustrated in the accompanying drawings, in which- Figure l represents the front page of said book, showing the guarantee certificate; Figs. 2 and 3, are examples of two of the stock certificates bound in the book, and Fig. 4 is a perspective View of the book disclosing the non-detachment notice.

An incorporated commercial company hereinafter termed the central company, is created, having the capital and facility of' managing the manufacture and the marketing of "a plurality of articles, which may belong to a variety of different classes. This central company, which' is designated in Fig. 1, of the drawing as Smith, Adam & Smith, causes to be incorporated a plurality of separate and distinct sub-corporations, hereinafter called the working companies, each of which is organized for exploiting one of said classesonly. In place of incorporating said working companies, the central company may become interested in working companies already formed as hereinafter specified. Separate stock certicates are issued for each of the working companies, two of such certificates being shown in Figs. 2- and 3 of the drawing, as issued by the John Doe Company and the Jane Doe Company respectively. The stock certificates of each ofthe working companies, say

ten, in which the central company is interested, are bound together in book form by a wrapper as shown in Fig. 4. This wrapper contains a notice that the several certificates bound therein, cannot be detached and cannotbe'separately transferred without forfeiting the guarantee of the central company hereinafter referred to.

The central company acquires in each of the ten working companies a controlling amount of stock, say 5ft-per cent., places the same in trustv with a vtrust company, the name of which is left blank in Fig. l.' The f Patented Laag. s. isis, 1

remainder of the stock is sold or'acquired 'by various independent stock holders, each.

0f 119m Purchases a book and will vthanl come into possession of a like number "oft-f1' shares in each and every stock controlled by les the central company and bound together as.'

abovedescribed. The central company 'is f. sues printed guarantees of the form shovvnlA 1n Fig. l, one of such guarantees being in?,V

corporated in each of the books containing the stock certificates of the working com# panics. The guarantee discloses the name of the central company, the percentage of stock held by said company-in all the w,ork-

ing companles, the name of the trust company, and a statement to the effect that in the event of the average dividendspaid on the shares inclosed falling below a stated` percentage, the dividends of the stock held' in trust by the central company will be' applied to covering the deficiency of dividends on the stock certificates attached,

none of the latter be removed. The central company whlch should .be

equipped with the necessary capital, brain provided and labor, and other facilities, undertakes the management of the several working V companies and the marketing of the various articles manufactured by said working companies and uses its best efforts to make the same financially successful. Owing to this centralization of the various working companies, the various articles represented thereby may not only bel manufactured. at

a reduced cost, but the channels used for.

marketing some of these articles are available for marketing some or all of the other articles, so that in this way the distribution als.

of the goods is greatly facilitated and cheapened.

.When the dividends are declared by the several working companies corresponding payments are made to each of the stock holders. Should these payments when averaged, fall below the percentage mentioned in the guarantee and left blanif in Fig. l, then, the dividends accruing under the majority of the stock held in trust for the central company, are drawn upon and' must be applied to make up the deficiency. After the percentage mentioned'` in the guarantee has thus been made up and Sii: hat:

paid over to thezstock holders of the Worlin ing companies from the stock ot the central company, the remainderof the profit of the central company is distributed to the share holders of said company. 4ln this Way the stock holders of the Working companies are protected in a dual manner, first by averaging possibly inert stocks with active stocks, and secondly. by their right to receive profits from stock not held-by them at all, but by the centralcompany. At the same time the share holders of the central company' are also in a position to'earn'a substantial profit by a carefulselection of the Working companics, an v4intelligent management of the central company and an economical distribution of the various articles handled.

The owner of each of the stock books, may

A ofcourse detach and sell or otherwise disp ose of any one or more of the stock cer@I ,tiicates boundtherein. But 1n that event,

not only the certificate so detached, but alsol all the certificates still remaining in the depleted book will lose the guarantee of the eerftral company and shall be entitled only messie to the proiits actually earned by the Worlring companies by which said certificates are respectively issue l.

l clama-- l. The combination in a composite stockcertiiicate, of a dividend guarantee slip of a holding?,- company, With-a plurality of mutually united stock certiiicates of Workl' ing companies, each of said certificates bears ing a notice that upon a mutilationlof the combination through the removal of one or more of saidcertiicates, the dividend guatf:

' antee be vitiated.

y 2. A. stock book containing adividend guarantee sheet of a holdinglcompany, and a plurality ci' bound stock certificates of Working companies, each of said certificates bearing a notice that upon the removal of one'or more of said certiicates from Isaid book, the 'dividend guarantee be vitiated.

, Mois Hf Avant/i.

Witnesses: l

' ARTHUR il ZUMrn,

los 0, KRUMM. 

